Analysis of Macro-Environment Forces and Formal Institutional Factors
Even though the company has been showing activeness across different markets, the activities of business expansion overlap only over a considerably restricted number of the markets of product. The overlaps are in concern with the sectors of small household appliances, personal care, and oral care. However, these types of overlaps seem to be apparent in the industries for tooth brushes. The European Commission considered previously the relevant market of product for manual toothbrushes in separation from powdered brushes that are battery driven and rechargeable toothbrushes that resulted in leaving the exact definition of product market open. However, the Commission has taken the decision leaving the market open if rechargeable and battery toothbrushes have key belonging to the same market of product. Or if a joint market of product requires a significant definition as no concerns of competition would be taking place either under the delineation of market. The investigation of the market confirms that the retailers of Europe have been negotiating over the national level having representatives of sales over the respective group of suppliers. This delineation of the market is corroborated by the substantially different shares of market and significant differentials of price between different members of the state. In the similar sense, the pricing policy of P & G has been set nationally. Further investigating the consumer market, it was confirmed that the preferences of consumer still diverge between different members of the state. Due to this, the sales strategies of key competitor are in variation in different states of the member, and there is a sale of product under a number of different names of brand in different members of the state.
P & G had been at number one rank in the product category of personal and beauty care in the year 2011 at the global level with top most ranks in men’s grooming products, depilatories and hair care followed by the acquisition of Gillette in the year 2005. The share of the company for the BPC products has been declining since the year 2006 as it has been facing intense competition in both, emerging markets and western markets. L’Oréal affected the economic position P & G, as it obtained a leading position in the products of skin care in China owing a large number of products at different points of price. Across the Western market platforms, the products of the company have not been successful in launching appropriate success in comparison with the competitors. P & G has been conducting its operations in more than 80 countries while offering services and products in almost 180 nations all across the globe. There is division of sales across four key segments that are as follows:
North America is accountable for 44 percent of overall sales as of the year 2014 worth 34.8 billion dollars
Western Europe is accountable for 22 percent of the overall sales as of the year 2014 worth 17.4 billion dollars
North East Asia is accountable for 4 percent of the overall sales as of 2014 worth 3.2 billion dollars
Developing markets are accountable for 30 percent of the overall sales as of 2014 worth 23.7 billion dollars